Branding and advertising are two words that are often mixed up in the industry. Branding and advertising are not just two aspects with a tad-bit difference that can easily be neglected; they are rather two mutually exclusive events in business.

Branding, also referred to as Brand Development, is the internal work that is the foundation for everything else you do in your business. It is the touchpoints a brand places across different channels where their customers can see them, thereby connecting a certain imagery and association with the brand’s ideals and vibe. On the other hand, advertising is about creating a story that sells your products and services, or enables an emotional and strategic pull using paid channels.

Branding establishes a brand’s uniqueness while advertising is a paid marketing tool that businesses can use to establish their product in the market. While both are different aspects of marketing, branding and advertising often go hand in hand when it comes to finding and exploring a loyalty with a brand’s customer base.Branding is about creating a seamless brand imageryUnderstanding the difference between the two, advertising and branding, are vital aspects for one to come up with effective and creative ideas to promote a company’s product or service in the market. Branding is what your company believes in, why it is in business, the motive behind your business, what customers should feel about its products and services. Things like brand strategy, logo, corporate identity, color-combination and consistency towards maintaining a seamless identity throughout all efforts are all part of the branding equation. Essentially it all sums up to who you are and what you provide to your customer that helps you build your brand.Advertising is what you communicate with your customersOn the other hand, advertising is about the communication you want to have with your customers. Consider a few iconic campaigns like Nike’s “Just Do It”, or L’oreal’s “You’re Worth It”. These are campaigns that have successfully run for decades, thanks to the relatable yet inspiring aspects they bring with them. Customers feel like they want to be a part of the brand community because of what they communicate, translating largely to who they are as a brand. A marketing tool, advertising can be done a myriad ways - radio, billboards, pamphlets, TV spots, you name it. Advertising is mostly focused on driving sales and is designed to reach a target audience.

Branding comes first, followed by advertisement In the timeline of building a brand, the process of branding comes first. You first design your logo, vision and mission, target customers and only once you have prepared your road map will you decide upon your next crucial step i.e. your ad campaign. You advertise your product or service and have complete control over the same while it’s your customer service that influences your brand value.

Successful branding not only helps in customer recognition and loyalty, but also gives a business a competitive edge in the market. Additionally, with a strong brand and loyal customers, a successful branding strategy also enables easier launch of new products and services. For example, Tesla’s branding strategy enables the company to launch new products in a way that makes it easier for them to penetrate into the market, and at the same time, have a loyal base of customers that are aware of the exact brand ethos.

Advertising too, is linked with increased sales, a means to educate consumers and fight competition, among other perks. Advertising campaigns have an emotional and motivational appeal that resonates with customers for generations. Take for instance, Amul’s Utterly Butterly Girl that has an appeal with generations of Indians across decades.

To understand the intersection of advertising and branding, let’s rewind to Taco Bell in 1999:Two years after the Taco Bell Chihuahua ad campaign, the company witnessed a negative growth rate in 1999, which percolated to major store sales decline by 2000. Instead of investing only through ad campaigns, the taco chain put their ears to the ground and introduced products that would appeal to their consumers. They focused on penetrating the market with products that bridged the gap that consumers were feeling at the time. The chain realized that their customers cared about value-for-money products that were readily available even at odd hours. Taco Bell tapped into that area and introduced late night snacking options at lower prices. This amalgamation of branding through new product launches and awareness through ad campaigns, helped sales skyrocket that year. Not only that, but their customer satisfaction levels were at an all-time high.

ConclusionBranding is all about the ‘Give and Take’ formula. What you give your customers (quality), is what your customers give you back (feedback). While advertising is what you want the customers to know about you and how that lures new customers while maintaining the existing ones. Branding is what people say about you when you are not in the room; on the contrary, advertising is what you say about your product to the people. The impact of advertising, compared to branding, is temporary. If businesses stop advertising their brand recall corrodes with time. However, it isn’t the same with branding. If a business can set a strong branding in the beginning, customers remember that regardless. For example: Tata Tea Jaago Re’s branding and positioning has always been about them urging citizens to open their eyes towards relevant social causes. Obviously, to communicate this, they need advertising as a tool, but thanks to the right blend of branding and advertising, now consumers straightaway associate the brand with their connect with causes.

In essence, a brand is driven by both branding and advertisements as a part of its larger marketing strategy and it’s important for marketers to assess what stage their brands are at, and what helps them best, or if there is a way to integrate both tools to maximise their efforts.

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